On May 20, 2024, Kinden Corporation reported in its press release that it had received a shareholder proposal from Hibiki Path Value Fund for its 110th Ordinary General Meeting of Shareholders. The proposal is as follows, 1. Appropriation of surplus funds, The company has set a total dividend payout ratio of 40% during the subsequent medium-term management plan period, the company has mentions to aim for a total return ratio of 50% to 60%, The activist is requesting a fixed dividend of 160 yen per year calculated based on a total return ratio of 150% and a dividend payout ratio of 75%, which is contrary to the Company's philosophy of growth investment and shareholder returns. At the same time, there is also a risk of losing flexibility in capital policy.

Therefore, The board of directors opposes this proposal.